PPT on Product Life Cycle by ANUP KUMAR OJHA

8/3/2019 PPT on Product Life Cycle by ANUP KUMAR OJHA

1/12


2/12

Introduction

Product life-cycle management : is the

succession of strategies used by business

management as a product goes through itslife-cycle.

12/14/2011UMA KOLKATA 2


3/12

Product life-cycle (PLC)

Example: Like human beings, products alsohave an arc. From birth to death, humanbeings pass through various stages e.g. birth,growth, maturity, decline and death.

A similar life-cycle is seen in the case ofproducts.

Product life cycle (PLC) has to do with the lifeof a product in the market with respect toBusiness/commercial costs and salesmeasures.



4/12


5/12

Different stages of PLC

introduction stage:

I. costs are very high

II. slow sales volumes to startIII. little or no competition

IV. demand has to be created

V. customers have to be prompted to try theproduct

VI. makes no money at this stage



6/12

Growth stage

I. costs reduced due to economies of scale

II. sales volume increases significantly

III. profitability begins to riseIV. public awareness increases

V. competition begins to increase with a few

new players in



7/12

Maturity stage

I. costs are lowered as a result of production volumesincreasing and experience curve effects

II. sales volume peaks and market saturation is

reachedIII. increase in competitors entering the market

IV. prices tend to drop due to the proliferation ofcompeting products

V. brand differentiation and feature diversification isemphasized to maintain or increase market share

VI. Industrial profits go down



8/12

Saturation and decline stage

I. costs become counter-optimal

II. sales volume decline

III. prices, profitability diminishIV. profit becomes more a challenge of

production/distribution efficiency than

increased sales



9/12

Lessons of the PLC

It is claimed that every product has a life

period, it is launched, it grows, and at some

point, may die. A fair comment is that atleast in the short term not all products or

services die. Jeans may die, but clothes

probably will not. Legal services or medical

services may die, but depending on the socialand political climate, probably will not.



10/12

Limitations

The PLC model offers some degree of usefulnessto marketing managers, in that it is based onfactual assumptions. Nevertheless, it is difficult

for marketing management to gauge accuratelywhere a product is on its PLC graph. A rise insales per se is not necessarily evidence of growth.A fall in sales per se does not typify decline.Furthermore, some products do not (or to date,

at the least, have not) experience a decline. CocaCola and Pepsi are examples of two productsthat have existed for many decades, but are stillpopular products all over the world.



11/12

Any Questions

?



12/12

THANK YOU

[email protected]


Documents

PPT on Product Life Cycle by ANUP KUMAR OJHA